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Rooibos Offers Unique Flavor, Wellness and Growth Opportunities

South Africa, western Cape Province. Rooibos tea, is harvested in the fields, then, crushed, and separated, laid out to dry, then finally packaged for consumption, at the Groenkol Rooibos Farm, in The Clanwilliam District. 04/2008 (Photo by Rodger Bosch/Flickr)

Rooibos means “red bush” in Afrikaans. The caffeine-free herb with low levels of tannin grows only in a tiny coastal area of South Africa’s Western Cape in harsh shrubland—making it unique in its origin, climate and flavor, which are not reproducible in other terroirs. Known for its natural sweetness and healthful properties, it possesses potential for market growth.

One
of the main selling points of rooibos is its claimed health benefits, mostly
convincing, though not scientifically proven. These are shared by green teas,
but rooibos seems to have a wider range of wellness properties, with around
twice the concentration of anti-oxidants, several not found in tea or in herbal
beverages. Its other selling point is its complex flavor that is both a little
sweet, smoky and closer to a black tea than a green. (Detractors find it
tobacco-like and woody.)

The
main health benefits that distinguish rooibos from the many caffeine-free
herbal teas and botanical wellness beverages come from its unique chemical
profile. Here
are examples:

Nurtures vascular
system: Aspalathin and nothofagin have measurable
effects on inflammation of the entire vascular system. They are thought to be
key in treating possible complications from diabetes relating to the heart. Aspalathin
is found only in rooibos and no other food or beverage.

Though
sales are growing consistently and reputation rapidly, the U.S. has been a
laggard in rooibos imports. Of South Africa’s shipments of 16,000 metric tons, a
record 2,000 went to Japan in 2018. Germany and the Netherlands account for
almost half the imports. Figures for the USA are unreliable, with wide
variations in reports. In 2016, it constituted just 5
percent of South Afridan rooibos exports. Much of the sales are from
bulk rooibos exported from Germany. Prices are increasing rapidly, as a result
of severe drought.

The
main point of leverage
in the value chain seems to be retailers. The product base is
established, with a strong body of customer affidavits. The tea fits easily
into the three major growth trends in beverages: innovation and variety in
flavors, botanical ingredients, and functional wellness drinks. Obvious closers
of the awareness gaps are: store section and shelf placement (dietary teas,
health drinks), free sampling—rooibos is best marketed through experience, and
a clarification of the health benefits, taste complexity and appeal.